Incentives for Plug-in Hybrids and Electric Cars

Federal Incentives

We're doing our best to track the growing list of federal and state-based incentives for purchasing an electric car or plug-in hybrid. See how much you can save to get behind the wheel of an electric-drive plug-in vehicle. Help us keep the list up-to-date by letting us know if you have info about new or changing incentives.

New Plug-in Car Purchases

Buyers of plug-in hybrids and electric cars benefit from a tax credit of $2,500 to $7,500, depending on the size of the battery in the car. On the low end of the spectrum, cars with 4 kWh battery packs will qualify for a $2,500 tax credit. The credit maxes out at $7,500 for cars with a 16 kWh battery pack. Every pure EV on the market today qualifies. The credits were provided as part of the American Recovery and Reinvestment Act, otherwise known as the “stimulus bill.” The incentive begins phasing out after an automaker sells 200,000 vehicles that are eligible for the credit. Tesla and Chevrolet have passed this level of sales so expect a smaller incentive on a purchase of their vehicles.

Utilities: Rebates and Better Electricity Rates

Many electric utilities around the country offer special rates, including time-of-use (TOU) rates, to reduce the cost of powering an electric car or plug-in hybrid. The reduced EV rate can significantly reduce the cost of charging your car. Check with your local utility company for exact rates and other details.

Southern California Edison, which provides electricity to 14 million people, now offers a $1,00 Clean Fuel Reward to customers who drive plug-in vehicles. (You get $1000 if you purchased or leased your car on or after January 1, 2019. You can still receive a $450 rebate if you purchased or leased your vehicle before 2019. There are additional incentives for installing a home charging station.) Other states such as Georgia and Florida, have offered perks and special rates for years—but the new SCE incentive makes second and third owners of a vehicle eligible for the payment.

PG&E customers with EVs are eligible to receive a $800 Clean Fuel Rebate for their use of electricity as a clean transportation fuel.

Discounts on Insurance

Several major insurance companies, such as Farmers, offer discounts of 5 percent or more for owners of electric and hybrid cars. Inquire with your insurance agent for details. We will continue to investigate which companies offer the best rates for EV owners and will post to this page.

Charging Equipment

Federal incentives for home charging stations expired at the end of 2017. However, many states offer individual EV buyers and businesses a credit for the purchase and costs of charging equipment.

A web search will reveal local incentives for a home charging station. Or check out the list of local incentives maintained by ChargePoint and Clipper Creek.

State Incentives

Arizona

The vehicle license tax (VLT) for an electric vehicle is changed to a rate of $4 per $100 of assessed valuation, which is determined by the following:(1) For the first year, the assessed value is 1-percent of the factory list price (FLP) of the AFV; (2) For subsequent years, the assessed value is depreciated 15-percent each year; (3) The minimum VLT for an AFV registration is $5. To calculate the savings for an Alternative Fuel Vehicle, take the Vehicle License Tax due (for gasoline or diesel vehicles) and multiply it by 0.02381. The result is what you would have paid (or $5, whichever is higher).

If you have a current AFV special plate, you can use the HOV freeway lanes at any time, regardless of the number of passengers. Electric powered vehicles are exempt from all emissions testing requirements.

California

The Clean Vehicle Rebate Project (CVRP) offers rebates for the purchase or lease of qualified vehicles. The rebates offer up to $2,500 for light-duty zero emission and plug-in hybrid vehicles that the California Air Resources Board (ARB) has approved or certified. The rebates are available on a first-come, first-served basis to individuals, business owners, and government entities in California that purchase or lease new eligible vehicles. In periods when funding exceeds current budgets, waiting lists can form.

The rules and funding amounts are subject to change. For more information, including a list of eligible vehicles and other requirements, see the CVRP website.

California's Clean Vehicle Assistance Program provides grants and affordable financing to help low-income Californians purchase a new or used hybrid or electric vehicle. Its goal is to make clean vehicles accessible and affordable to all who qualify. The maximum income for an individual is $48,560, with a scale that climbs to a max of $100,400 for a family of four or $169,520 for a family of eight people. Grants are for new or used clean vehicles. You can get a $2,500 grant for a hybrid vehicle or a $5,000 grant for a plug-in hybrid or electric vehicle. Battery electric vehicles can also include a charging unit and its home installation. For more information, visit https://cleanvehiclegrants.org.

For public agencies, the Bay Area Air Quality Management District’s (Air District) PEV Rebate Program provides funding through vouchers that are issued in these amounts: (1) $2,500 per light-duty zero-emission vehicles, including battery electric and hydrogen electric vehicles; (2) $1,000 per light-duty plug-in hybrid electric vehicles; (3) $500 per zero-emission neighborhood electric vehicles; and (4) $2,500 per zero-emission motorcycles. Vouchers may be redeemed on a reimbursement basis and must be issued prior to the purchase or lease of vehicles. For more information: http://www.baaqmd.gov/Divisions/Strategic-Incentives/On-Road-Vehicles/Pu...

Carpool lane stickers:
The California DMV issued Red decals in 2018 to first-time applications for qualifying vehicles. The Red decal will expire January 1, 2022. The California DMV is now also issuing Red decals to vehicles originally issued a Green or White decal on or after January 1, 2017. In late 2018, all eligible vehicle owners were mailed a pre-filled CAV decal application form with instructions and a return envelope from DMV. The pre-filled applications were mailed by the California DMV, to the vehicle owners address on file. If you believe your vehicle is eligible for a new Red decal and you did not receive a letter from DMV, please submit a completed CAV decal application form (REG 1000) to DMV for review.

If your vehicle was originally issued White or Green decals prior to 2017, your vehicle is no longer eligible for any CAV decal programs and is no longer be eligible to participate in the CAV decal program after January 1, 2019.

Assembly Bill 544 established a new Clean Air Vehicle (CAV) decal program for 2019. This decal will continue to allow eligible single-occupant vehicles into carpool lanes. The vehicle eligibility requirements for the new decal are similar to those used for the Red, White, and Green decal programs. Purple decals are valid until January 1, 2023. Red decals are valid until January 1, 2022.

Green and White decals expired at the end of 2018. Qualifying vehicles originally issued a Green or White decal in 2017 or 2018 are eligible to apply for a Red decal (expiring January 1, 2022). If you believe your vehicle is eligible for a Red decal, and you did not receive a pre-filled CAV decal application form with instructions and a return envelope from DMV, please submit a completed Clean Air Vehicle decal application form (REG 1000) to DMV for review.

If your vehicle was originally issued White or Green decals prior to 2017, your vehicle is no longer eligible for Clean Air vehicle decals and can no longer use high-occupancy vehicle lanes without the full required number of passengers. You may check if a vehicle was issued a decal prior to 2017 on DMV's website.

All new decals issued under this program expire on January 1 of the fourth year after the year in which they were issued. This provides an access period of three full years plus the partial year from when the decal was issued. For example, if a decal was issued anytime in 2019, it expires January 1, 2023. Please note that this program will end, and any remaining valid decals will expire on September 30, 2025.

Utilities:
Many utilities offer discounted rates for residential vehicle charging during off-peak hours, including PG&E, Los Angeles Department of Water and Power, SDG&E, Riverside Public Utilities, and others.

Southern California Edison in May 2017 started offering a $1,000 reward to customers who drive plug-in vehicles, including to second and third owners of an eligible vehicle. Each plug-in vehicle, identified by its VIN, can qualify for the Clean Fuel Rebate up to three times over its lifetime, but only after a change of possession (i.e., new owner or lessee, as applicable). Each household may receive the Clean Fuel Rebate only one time for an EV, but if you transfer ownership, the new owner (or lessee, if applicable) will qualify for a rebate as long as the new owner or lessee meets the other eligibility requirements and the vehicle has not reached the maximum of three rebates associated with the EV. If you have multiple eligible EVs in your household, you may receive a rebate for each vehicle if you otherwise qualify. For a list of eligible vehicles and other details, visit Southern California Edison’s website about its Clean Fuel Rewards Program.

PG&E customers with EVs are eligible to receive a $800 Clean Fuel Rebate for their use of electricity as a clean transportation fuel. You must be a PG&E customer with an active residential electric account. As the account holder, you may also apply on behalf of an EV owner in your household (or tenant in a multifamily household) with the vehicle owner’s permission.You must own or lease an eligible plug-in electric vehicle or have permission from the vehicle owner to submit the application.Your vehicle, identified by its unique vehicle identification number (VIN), must not have already received the Clean Fuel Rebate under the current owner or any previous owner. You must have paid the vehicle's current registration fees and your vehicle must be registered in California to the address on your PG&E account. Learn more about PG&E’s Clean Fuel Rebate program.

The LA Department of Water and Power’s “Charge Up L.A.!” program offers residents a rebate of up to $500 toward charging equipment and installation. Visit the program website for more details.

Residential property owners may have access to Property-Assessed Clean Energy (PACE) financing to install EV supply equipment (EVSE), depending on if the local government has a PACE program in place. PACE financing allows property owners to borrow funds to pay for the EVSE, and repays the funds through a special assessment on the property over a defined time.

Municipalities:
Sacramento offers free or discounted parking to individuals or small businesses certified by the city's Office of Small Business Development that own or lease EVs with an EV parking pass in designated downtown parking garages and surface lots. Free EV charging is also provided in several parking garages.

Sacramento Municipal Utility District (SMUD) is offering residential customers either a $599 rebate or a free Level 2 charger for SMUD customers who purchase or lease an EV. Los Angeles Department of Water and Power’s Charge Up LA! Program offers a $500 rebate for the installation of an EV charger and an additional $250 and 2.5 cents/kWh rate discount with a separate meter TOU rate enrollment for purchases before June 30, 2018.

The City of Anaheim provides a $500 rebate and a city permit fee waiver for a level 2 charger installation.

Burbank Water and Power in Burbank, Calif., offers rebates on electric vehicle charging stations as follows: up to $500.00 for residential equipment and up to $1,000.00 for commercial stations. In addition, a discounted per kWh rate for use of public EV charging locations is set to $0.1744 for off-peak hours and $0.3053 during peak hours. See more information on incentives in Burbank.

The City of Colton also offers $500 for a Level 2 charger installation for either residential or commercial use.

Glendale offers a $500 rebate for the installation of a Level 2 charger and up to $2,000 for commercial or multi-family customers.

Pasadena Water & Power residential electric customers are eligible for up to a $250 rebate when they purchase or lease a new or used plug-in electric vehicle. Customers are allowed to receive incentives for up to two EVs per address every three years. Customers can receive an additional $250 bonus rebate (up to $500) if they purchase or lease an EV from a Pasadena auto dealer when an EV is purchased/leased after August 1, 2018. An additional $250 (up to $750) is available for customers currently participating in PWP’s income-qualifying programs when an EV is purchased/leased after August 1, 2018.

Residential electric customers are eligible for a $600 rebate when they install a qualifying “Wi-Fi enabled” EV charger at their home. Residential customers are eligible for a $200 rebate when they install a standard (Non Wi-Fi) EV charger. Residential charger incentive rates listed above are as of August 1, 2018. Level 2 (240V) EV charging stations purchased prior to August 1, 2018 are eligible for a $400 rebate.

Colorado

Colorado offers an income tax credit of $5,000 for those who purchase an EV. Get details at Colorado's Drive Electric website.

Grants are also available to local governments for the installation of EV charging stations. Grants are prioritized based on the local government's commitment to energy efficiency. EVs are exempt from emissions testing, but must pay a $50 annual registration fee according to HB 1110, Section 12, 42-3-304.

Charge Ahead Colorado offers funding for up to 80% of the cost for a home charging station, up to $3,260 for a Level 2 station with a single port and $6,260 for a multi-port, and $13,000 for a Level 3 station with a single port and $16,000 for a multi-port.

Connecticut

Delaware

The Delaware Clean Transportation Incentive Program will continue to offer vehicle and charging station rebates through December 31, 2019, with slight programmatic changes for clarity and flexibility. Rebates are available up to $3,500 from the state, and additional manufacturer offers may be available. Rebates are also available for charging equipment and for workplace charging stations that benefit businesses and their employees.

The Electric Vehicle Charging Equipment Rebate Program provides rebates for Level 2 electric vehicle charging equipment. Residential properties: The rebate is 50% of the cost of the charging station (maximum rebate amount per charging station is $500). Commercial properties: Each rebate is 75% of the cost of the charging station (maximum rebate amount per charging station is $2,500). Workplaces: Each rebate is 75% of the cost of the charging station (maximum rebate amount per charging station is $5,000). Under this program, a workplace is defined as an employer with 15 or more employees in a non-residential place of business.

District of Columbia

Plug-in vehicles are exempt from the excise tax imposed on an original certificate of title, and a reduced vehicle registration fee of $36.

Florida

JEA, a utility company in Jacksonville, JEA, is offering a rebate of up to $1,000 for purchased or leased plug-in vehicle: $500 rebate for a plug-in vehicle with a battery size smaller than 15 kWh; and a $1,000 rebate for a plug-in vehicle with a 15 kWh or bigger battery size.

Georgia

The Georgia tax credit is no longer effective (as of July 1, 2015). Previously, the state offered income tax credits for up to 20 percent of the cost of an electric car—maximum of $5,000—or 10 percent (with a max of $2,500) for a car conversion to use an “alternative fuel” including electricity.

Georgia Power, the largest utility in the state, has a $12 million pilot program that offers incentives to residential customers of $250 (and up to $500 for businesses) for installing certain types of EV chargers.

EVs with solo drivers are eligible for the HOV lane with the correct license plate displayed.

Georgia Power offers three different charging rate options for residential customers. The Plug-In Electric Vehicle rate provides a discount on electricity when used from 11 pm to 7 am.

EVs are exempt from emissions tests.

Hawaii

See State of Hawaii EV Laws. They include allowing qualified plug-in electric vehicles affixed with special state-issued license plates to use HOV lanes regardless of the number of passengers and are exempt from parking fees charged by any non-federal governmental authority. The exemptions are effective through June 30, 2020. Previous rebates have expired.

Hawaii Electric Company offers two residential EV charging rates with savings at off-peak hours, as well as a commercial EV charging rate.

Illinois

The IL Alternative Fuel Rebate Program is currently suspended.ComEd offers three different charging rates for EV drivers. Ameren does not offer any specific EV charging rates. EVs are eligible for a reduced registration fee of $35 for a period of two years. EVs exempt from emissions testing.

Some parking in Chicago for EV drivers only.

Louisiana

No emissions testing required.

Maryland

There is a Maryland Excise Tax Credit of $100 per kilowatt-hour of battery capacity up to a maximum of $3,000 for Electric Vehicle or Plug-in Hybrid. Maryland offers a rebate of 40% of the cost of Electric Vehicle Charging Equipment and Installation. The rebate is up to $700 for individuals; $4,000 for businesses; and $5,000 for retail service stations.

Plug-in vehicles qualify to access High Occupancy Vehicle (HOV) lanes, regardless of the number of passengers. MVA issues a permit that must be displayed on car for access.

Pepco and Baltimore Gas and Electric Company offer customers who own a plug-in vehicle the option for time-of-use charging rates. The programs offer a reduced electric rate during off-peak hours.

Maryland's Department of the Environment has more details about all these programs.

Massachusetts

The Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) program provides incentives to Massachusetts drivers who purchase or lease for 36 months a new qualified electric vehicle. For a complete list of eligible vehicles and information about the MOR-EV program, learn more at www.mor-ev.org. Rebates of up to $1,500 are available to Massachusetts residents who purchase or lease a qualified vehicle. Only vehicles listed on the MOR-EV program website are eligible for a rebate. The types of vehicles include battery electric cars, fuel cell electric cars, plug-in hybrid electric vehicles, and zero-emission motorcycles. Visit the MOR-EV program website for a complete list of eligible vehicles and to begin the application process.

EVs are exempt from emissions tests.

The Massachusetts EV Incentive Program (MassEVIP) provides grants to businesses with 15 or more employees for the installation of Level 1 or Level 2 EV charging stations. The program will provide 50% of the funding (up to $25,000) for the hardware costs. Cleanview Energy offers a $75 rebate towards a new ChargePoint residential EV charger with enrollment in ClearCharge Energy Plan.

Michigan

Indiana Michigan Power might provide rebates of up to $2,500 to residential customers who purchase or lease a new EV and install a Level 2 EVSE with a separate meter. Customers must also sign up for the Indiana Michigan Power PEV time-of-use rate. The rebate is available to the first 250 qualified customers who submit a completed application.

EVs are exempt from emissions tests. Beginning in January 2017, plug-in vehicles are subject to an increase in registration fees of $30 and EVs are subject to an increase of $100.

New Jersey

Zero-emissions vehicles sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption is not applicable to partial zero emission vehicles, including hybrid electric vehicles. ZEVs are defined as vehicles certified as such by the California Air Resources Board. For more information, visit the New Jersey Department of the Treasury website.

Electric cars qualify for access to the carpool lane. In addition, the New Jersey Turnpike Authority offers a 10 percent discount on off-peak New Jersey Turnpike and Garden State Parkway toll rates through NJ EZ-Pass for drivers of vehicles that have a fuel economy of 45 miles per gallon or higher and meet the California Super Ultra Low Emission Vehicle standard.

EVs with solo drivers are eligible for the HOV lanes on the NJ Turnpike.

New York

New York's Clean Pass Program allows EVs with solo drivers are eligible for the HOV lanes on the Long Island Expressway with proper decal.

EVs are exempt from emissions testing.

The EV Charger Rebate program provides a credit for the installation of EVSE to certain qualified property up to $5,000 or 50% the cost of the property, whichever is less. Cleanview Energy offers a $75 rebate towards a new ChargePoint residential EV charger with enrollment in ClearCharge Energy Plan. Learn more on the New York State Energy Research and Development Authority website.

Ohio

In Cincinnati, EV drivers get free parking at any meter in the city and at two city-owned parking garages. Applications are available from the city.

Oregon

In July 2017, the Oregon House approved a $5.3 billion, 10-year transportation funding package (HB 2017), that includes plug-in vehicle incentives. Rebates for qualifying vehicles are set annually by the department as follows: (a) For light-duty zero-emission vehicles and plug-in hybrid electric vehicles with an electrochemical energy storage capacity of 10 kilowatt-hours or more, up to $2,500 but not less than $1,500. (b) For light-duty zero-emission vehicles or plug-in hybrid electric vehicles with an electrochemical energy storage capacity of fewer than 10 kilowatt-hours, up to $1,500 but not less than $750.

To be eligible for a rebate, a person requesting a rebate under the program must purchase or lease a qualifying vehicle. A lease must have a minimum term of 24 months; provide proof of an intent to use the qualifying vehicle primarily on the public highways of this state, which may be satisfied by providing proof of registration of the qualifying vehicle in Oregon; submit an application for a rebate to the administrator of the program within six months after the date of purchase of the qualifying vehicle or six months after the date the lease of the qualifying vehicle begins.

Pennsylvania

Pennsylvania's Alternative Fuel Vehicle Rebate Program provides a $2,000 rebate for a Plug-In Hybrid Electric Vehicle (PHEV) or Battery Electric Vehicle (BEV) (battery system
capacity must be equal to or greater than 85 kWh). It also offers $1,750 rebate for a Plug-In Hybrid Electric Vehicle (PHEV) or Battery Electric Vehicle (BEV) (battery system capacity must be equal to or greater than 30 kWh and less than 85 kWh)--and a $1,000 rebate for a PHEV or BEV (battery system capacity must be equal to or greater than 10 kWh and less than 30 kWh). Finally, a $750 rebate is available for a PHEV or BEV (battery system capacity less than 10 kWh).

Rhode Island

The Rhode Island DRIVE incentive program was discontinued in 2017.

The town of Warren offers residents with plug-in cars an excise tax exemption and reduced registration, described as an exemption "from the tax imposed by this chapter in an amount not to exceed one hundred dollars ($100) motor vehicles registered in Warren."

EVs are exempt from emissions testing but must pass a safety inspection.

South Carolina

A state income tax credit equal to 20 percent of the federal fuel cell, advanced lean burn, hybrid electric vehicle, and alternative fuel vehicle credits is available to South Carolina resident taxpayers who are eligible for, and claim, the federal credits. This credit applies to electric cars and plug-in hybrids.

Duke Energy has extensive programs and incentives available via its EV Initiatives.

Tennessee

The $2,500 incentive offered to plug-in vehicle buyers in Tennessee is no longer available. The incentives were originally open to the first 1,000 buyers of the Nissan LEAF and Chevy Volt in 2010. It was a joint program by the Tennessee Department of Economic and Community Development and The EV Project. The national EV Project stopped taking enrollment on Jan. 31, 2013. (By that point, 772 rebates had been issued in Tennessee, totaling $1.8 million—about $700,000 short of its original goal, according to the Associated Press.)

EVs with solo drivers are eligible for the HOV lane but must apply for the Smart Pass program and display the decal in the lower right side of the rear window.

Texas

After a three-year absence, Texas in June 2018 started offering rebates for the purchase of alternative fuel vehicles. As of April 2019, the program's website shows that rebates are no longer available.

The city of San Antonio offers free metered parking for EVs. The city of Austin offers rebates up to $1,500 for the purchase of EV charging equipment. Austin Energy offers an EV360 Pilot Program for EV charging with reduced off-peak rates from 7 pm to 2 pm the next day on weekdays, and anytime on weekends. The lowest rates offered are $30/month. There is a one-time enrollment fee of $150.

The AirCheckTexas Drive a Clean Machine program provides a rebate up to $3,500 for vehicle replacement to a EV if certain county and income requirements are met, and certain vehicle conditions are met.

EVs are eligible for free parking up to two hours at Salt Lake City parking meters, with a Green Vehicle parking permit.

Washington

EV and qualifying plug-in hybrids are eligible for a sales tax exemption for the purchase or lease of the vehicle. The exemption is available until July 1, 2019. Businesses are eligible to receive tax credits on a first come, first serve basis up to 50% of the incremental cost of the EV. The maximum commercial tax credit is based on the weight rating of the vehicle.

Canada

British Columbia

B.C. residents will get up to $5,000 off the sticker price of a qualifying clean energy vehicle starting Dec. 1, 2011. The rebate includes qualifying new vehicles that are battery electric, fuel-cell electric, plug-in hybrid electric and those that operate on compressed natural gas. There are about 30 such vehicles for fleets in B.C., and 10 to 20 for residential use. As part of the $17-million program, the province is also providing funding for new charging stations and upgrades to hydrogen fueling stations at existing facilities. Homeowners who want to install a charging station will get a $500 mail-in rebate for eligible units. See for CEV Program website for details.

On March 7, 2018, three new rebates, funded with $1.85 million from the Province of British Columbia as part of its Clean Energy Vehicle Program and administered by Plug in BC, became available through March 31, 2020 (or while program funding lasts). Rebates for Homes have been fully distributed. The program closed on July 6, 2018. Applications are no longer accepted. For details and to apply, visit: pluginbc.ca/chargingsolutions

Ontario

Ontario canceled the cap and trade program to bring gas prices down and help lower costs for Ontario families and businesses. As a result, on July 11, 2018, the Electric and Hydrogen Vehicle Incentive Program was canceled.

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